Rigged games, fake players: Enforcement Directorate books WinZO for laundering ₹3,522 crore

Bengaluru:

The Enforcement Directorate (ED), Bengaluru Zonal Office, has filed a prosecution complaint under the Prevention of Money Laundering Act, 2002, against online gaming platform Winzo Pvt. Ltd., accusing the company and its promoters of large-scale financial fraud and manipulation of real money games.

The complaint was filed on January 23, 2026, before the Special Court under PMLA (CCH-1), Bengaluru. Apart from Winzo Pvt. Ltd., the ED has named its directors Paavan Nanda and Saumya Singh Rathore as accused, along with its wholly owned Indian and foreign subsidiaries — Winzo US Inc. (USA), Winzo SG Pte. Ltd. (Singapore) and ZO Pvt. Ltd. 

Notably, the gaming app is promoted by India’s cricket legend MS Dhoni.

The ED said the investigation was initiated based on several FIRs registered by the Bengaluru CEN Police Station and police authorities in Rajasthan, New Delhi and Gurugram for alleged cheating offences under the Indian Penal Code.

As part of the probe, the agency carried out search and seizure operations on November 18 and December 30, 2025, at Winzo’s office premises, the residence of one of its directors, and the office of its accounting firm. These searches led to the seizure of incriminating documents and electronic records, and the freezing of movable assets worth approximately ₹690 crore, including bank balances, payment gateway funds, mutual funds, bonds, fixed deposits and cryptocurrency wallets. 

According to the ED, Winzo operates a mobile-based real money gaming (RMG) platform offering over 100 games and claims a user base of nearly 25 crore, largely from Tier-3 and Tier-4 cities. The company earns revenue by charging a commission on the betting amounts placed by users and had publicly assured players that its platform was free from bots and manipulation.

However, the investigation allegedly revealed systematic manipulation of games. The ED claimed that until December 2023, several games were embedded with bots, artificial intelligence tools and algorithm-driven profiles. Between May 2024 and August 2025, the company allegedly altered its modus operandi by simulating historical match-play data of dormant or inactive players and pitting them against real users without their knowledge or consent.

To conceal these practices, the use of bots was allegedly described internally using misleading terms such as “Engagement Play (EP)”, “Past Performance of Player (PPP)” and “Persona”. 

The ED further alleged that users were initially attracted through small bonuses and easy wins against weaker bots, and were even allowed to withdraw minor winnings to build trust. Once users began placing higher bets, more difficult “winning bots” were deployed, resulting in heavy financial losses.

The agency estimated that genuine users lost around ₹734 crore while playing against bot profiles. In several cases, even legitimate winnings at higher stakes were allegedly blocked through restrictive withdrawal mechanisms, forcing continued gameplay. 

The investigation also found that Winzo failed to return legitimate user deposits and winnings amounting to ₹47.66 crore even after the Union government banned real money gaming, the ED claimed.

Money laundering through foreign entities alleged

The ED alleged that Winzo generated proceeds of crime totalling ₹3,522.05 crore between FY 2021-22 and FY 2025-26 (as of August 22, 2025). These proceeds were allegedly laundered through shell companies in the United States and Singapore.

According to the agency, about USD 55 million was transferred to foreign bank accounts under the guise of overseas direct investment. An additional ₹230 crore was allegedly diverted to a subsidiary company as purported loans from the holding company, without any legitimate business rationale. Attempts to divert another ₹150 crore reportedly failed due to non-submission of mandatory audit and utilisation certificates. 

The ED said electronic evidence indicated that the alleged manipulative gaming structure caused severe financial distress among users, particularly those from economically weaker backgrounds. The agency claimed that some users experienced extreme mental distress and suicidal tendencies.

In its prosecution complaint, the ED stated that the accused knowingly generated, possessed, concealed and projected the proceeds of crime as untainted property, attracting offences under Sections 3, 4 and 70 of the PMLA.

Further investigation in the case is ongoing, the agency added.